Brown-Forman Corporation (BF-B)vsCostco Wholesale Corp (COST)
BF-B
Brown-Forman Corporation
$28.03
+1.01%
CONSUMER DEFENSIVE · Cap: $12.95B
COST
Costco Wholesale Corp
$996.08
+1.36%
CONSUMER DEFENSIVE · Cap: $438.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 7643% more annual revenue ($303.15B vs $3.92B). BF-B leads profitability with a 18.4% profit margin vs 3.0%. BF-B appears more attractively valued with a PEG of 2.01. BF-B earns a higher WallStSmart Score of 58/100 (C).
BF-B
Buy58
out of 100
Grade: C
COST
Buy55
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 27.6%
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Revenue declined 1.4%
Trading at 12.3x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BF-B
The strongest argument for BF-B centers on Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.6%.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : BF-B
The primary concerns for BF-B are PEG Ratio, Revenue Growth.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 47.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
BF-B profiles as a declining stock while COST is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
BF-B scores higher overall (58/100 vs 55/100), backed by strong 18.4% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Brown-Forman Corporation
CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA
The Brown Forman Corporation is one of the largest American-owned companies in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several well known brands throughout the world, including Jack Daniel's, Early Times, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Finlandia, Herradura, Korbel, and Chambord.
Visit Website →Costco Wholesale Corp
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.
Visit Website →Compare with Other BEVERAGES - WINERIES & DISTILLERIES Stocks
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